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DOJ Charges Two Herbalife Executives with Criminal FCPA Violations

Last week, DOJ announced the indictment of two former Herbalife executives in China for participating in a bribery scheme over a ten-year period.  Herbalife, a multi-level marketing company, was not charged and its investigation is ongoing. The criminal; indictment, which was returned in the Southern Dustrict of New York, charges Yangling Li, aka Jerry Li, and Hongwei Yang, aka Mary Yang.  Li was the former...

Alstom Executive Convicted on FCPA and Money Laundering Violations

Lawrence Hoskins, a UK citizen and former Alstom executive, was convicted last Friday on 11 of 12 counts for his role in a bribery scheme involving Indonesian officials. Hoskins conviction took years to secure because of jurisdictional challenges and appeals.  Hoskins was originally indicted in 2013.  Alstom itself settled FCPA charges at the end of 2014 and agree to pay roughly $770 million.  Three other...

California AG Issues California Consumer Privacy Act Regulations

Last month, the California Attorney General released draft regulations for the California Consumer Privacy Act (CCPA).  (Here). The regulations focus on three primary areas: (1) consumer notices; (2) consumer requests for information and handling of information; and (3) verification requirements. The implementation date for the CCPA is January 1, 2020.  The deadline for submission of comments is December 6, 2019.  The regulations will not become...

Under Armour Under DOJ and SEC Investigation For Revenue Recognition Scheme

The Justice Department and the SEC have launched criminal and civil accounting fraud investigations against Under Armour.  The sportswear maker has been suffering a rapid revenue decline over the last few years.  The allegations focus on Under Armour’s accounting practices and shifting of sales from quarter to quarter to present a healthier picture of its finances than was actually occurring. Under Armour Culture Problems Over...

Episode 116 — Alstom Executive Convicted of FCPA and Money Laundering Offenses

Lawrence Hoskins, a UK citizen and former Alstom executive, was convicted last Friday on 11 of 12 counts for his role in a bribery scheme involving Indonesian officials.  Hoskins conviction took years to secure because of jurisdictional challenges and appeals.  Hoskins was originally indicted in 2013.  The jury deliberated for one day – a resounding victory for DOJ prosecutors.  Hoskins’ defense team launched an unusual defense, claiming that...

FINRA Fines BNP Paribas $15 Million for Anti-money Laundering Violations

The Financial Industry Regulatory Authority is not known for its aggressive enforcement record.  But that may be changing. FINRA recently fined BNP Paribas for $15 million for anti-money laundering deficiencies in the broker-dealer unit’s operations that allowed billions of dollars’ worth of suspicious penny stock and foreign currency transactions. BNP’s senior management failed to respond to repeated warnings from staff that the firm’s minimal AML...

Two Charitable Foundations Pay $6 Million for Anti-Kickback Violations

Two charitable foundations that helped patients pay for drug co-payments settled anti-kickback charges for $6 million.  The Patient Access Network Foundation (PANF) agreed to pay $4 million and Good Days agreed to pay $2 million to resolve AKS allegations.  The charitable foundations were used as pass throughs for Denderon, Astellas, Amgen and other drug companies to funnel money to Medicare patients taking their drugs.  The...

Justice Department Unseals Unaoil Executives’ FCPA Guilty Pleas

The Justice Department announced that three Unaoil executives entered FCPA guilty pleas last year.  The three executives cooperated with law enforcement in the investigation and prosecution of other companies and individuals.  In March 2018, the former Unaoil CEO, Cyrus Ahsani, and former Unaoil chief operations officer, Saman Ahsani, plead guilty to one count of FCPA conspiracy for paying millions in bribes to foreign officials in...

Episode 115 — Review of Recent Healthcare Fraud Enforcement Actions

The Justice Department has aggressively continued to pursue False Claims Act prosecutions against healthcare companies and physicians.  By the mid-point of 2019, DOJ had collected over $800 million against pharmaceutical and healthcare professionals.  In the last few months, DOJ has brought several significant prosecutions. In this Episode, Michael Volkov reviews recent healthcare fraud enforcement cases.

Five Steps to Improve Board Monitoring of Compliance

In today’s aggressive enforcement environment, corporate board members have a target on their respective backs.  Even with robust liability insurance, corporate boards are operating in a state of “ignorance is bliss.”  Chief compliance officers face enormous challenges, and perhaps their greatest challenge is enlisting and securing the support of the corporate board.  We often hear about  happy-talk about senior management and board support – but...